Jonathan inherited a large amount of money from his uncle. Jonathan wishes to start his own business, and his lawyers encourage him to make it a corporation. What disadvantage of a sole proprietorship are the lawyers trying to avoid?
A. Unlimited liability
B. Lack of management skills
C. Retention of all profits
D. Lack of money
E. Double taxation
Answer: A
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Compare and contrast the Product Life Cycle and the Project Life Cycle.
Fill in the blank(s) with the appropriate word(s).
The adjusting entry to record an accrued expense is:
A. Increase an asset; increase revenue. B. Increase an expense; decrease a liability. C. Increase an expense; increase a liability. D. Increase an expense; decrease an asset. E. Decrease a liability; increase revenue.
Professional Dental Supply has been successfully selling dental instruments to dentists for the past twenty years and has developed strong customer relations. When looking for new marketing opportunities, Professional Dental Supply will most likely look first at
A. market penetration. B. product development. C. market development. D. diversification. E. Professional Dental Supply will look at all opportunities equally.
Angel recently purchased a block of 100 shares of Hayley's Optical common stock for $6,000. She expects to receive annual dividends of $400 indefinitely from those shares. Assuming a discount rate of 8 percent, how does the price Angel paid compare to the value of the stock?
What will be an ideal response?